
Law And The Judiciary | |
Courts Overturn Lawyers' Huge Fees |
In suits ranging from recent tobacco litigation to ordinary auto accidents, clients are beginning to get some relief from staggering legal fees. In a landmark ruling, a Colorado appeals court several years ago upheld a verdict against a lawyer who had pocketed one-third of a quick $100,000 settlement against an insurance company. His client, an 80-year-old woman who had fractured her skull in an auto accident and been hospitalized for five weeks, sued the lawyer on the grounds that his cut -- customary under the circumstances -- amounted to highway robbery.
Legal experts say the judges are dusting off ethical rules that limit lawyers to charging "reasonable" fees, no matter what their contracts say. Lawyers are being required to tell their clients up front that hourly rates may save them a lot of money. Supporters of contingency fee arrangements say they are justified because they allow people who do not have the funds up front to obtain legal representation. And since clients aren't charged anything unless a recovery is made on their behalf, lawyers argue they're entitled to a premium over hourly rates for risking earning nothing in a losing cause. Source: Richard B. Schmitt, "Courts Whittle Down Lawyers' Fat Contingent Fees," Wall Street Journal, January 28, 1998. |
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